Board hears finance update; officials say district can carry cash through November if state budget delayed

Clarkston Community Schools officials told the board Monday that the district's fund equity and cash reserves would allow operations to continue for several months if the Michigan Legislature delays the state budget and the first school-aid payment.

Marybeth Rogers presented the monthly finance report covering June, July and August. Rogers reported an August 31 fund equity figure of $25,700,000 and an unaudited year-end fund equity projection near $28,900,000 (28.9 percent). She said typical state aid arrives Oct. 20 and that the district's rough calculation is it receives about $10,000,000 per month from the state.

Board members asked how long the district could operate if the state budget was not passed. Rogers said cash flow would become an issue if the state did not make payments on schedule, but that the current fund equity would likely carry the district through Thanksgiving if necessary. Board members emphasized they do not plan to borrow to operate and would instead use fund equity while pressing legislators for action.

Board discussion noted that while the fund equity position is healthy compared with earlier years, a prolonged state shutdown would force the district to consider additional options. No formal action was required; the finance report was received as an information item.

Board president and members urged outreach to legislators, and a later agenda item described a recent advocacy trip to a CASBA conference where board members met with congressional staff and discussed the district's strategic plan and academic outcomes.

The board will receive further finance updates during the regular reporting cycle.